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Note: Blockchain integration into supply chain has been regarded as one of the POC products that is most likely to be realized in daily life. Recently, Ma Xiaohua of Wanglu Technology shares his view on integrating blockchain technology into supply chain titled: Blockchain A catalyst for supply chain finance. Below is translation of some excerpts. He points out that the trust machine may effectively curb the attempt for cheating bank loan.

With introduction of blockchain, supply chain finance could form a new business model. Supply chain finance aims to solve the imbalance of capital allocation for small and medium enterprises, connecting the logistics chain, capital chain, business flow and information flow of upstream and downstream companies. Furthermore, the group competitiveness of the whole ecosystem could be lifted as a whole based on the mutual trust. With the endorsement from e-commerce platform and p2p lending platform, we may enter into a new era: blockchain plus supply chain finance.

In fact, China’s credit system is not yet mature. The risk control for enterprise is still a big challenge. In the field of supply chain, the source of the risk lies in the authenticity of corporate information and the solvency of core companies. The authenticity of transactions between enterprises is also kept in the dark. Therefore it’s very likely the core companies and supplier colluded to cheat bank loaning.

Credit issue
The credit information of many enterprises is centrally controlled by a certain number of companies like bank or big internet companies. It’s hard for outsiders to get access to this information. Major participants in a blockchain could play the role of node so that the whole business flow are visible and records immutable. Such features facilitate auditing of capital flow and information flow. Stakeholders are relieved from the trust issue.Cost savings and efficiency
Blockchain create trust without losing the confidentiality of information via recording, transmission, verification and analysis of data. In the financial sectors, blockchain can not only save a lot of manpower costs but also greatly simplify the transaction process. Thus efficiency is raised while lower the settlement risk.

China’s current supply chain system model is relatively isolated and lacking transparency, resulting in an inefficient supply system. There are even some pseudo-supply-chain because of fake information. With blockchain technology, the flow and the security of financial supply chain could be improved. Distributed network can be linked to each node to prevent double spending and achieve automated payment, greatly improving the efficiency of the financial supply chain so that sellers, buyers and suppliers can achieve win-win results.

Translation of China Bitcoin and Blockchain news. Opinion is from the original author, not 8btc.

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1 year agohl5460

Note: Blockchain integration into supply chain has been regarded as one of the POC products that is most likely to be realized in daily life. Recently, Ma Xiaohua of Wanglu Technology shares his view on integrating blockchain technology into supply chain titled: Blockchain A catalyst for supply chain finance. Below is translation of some excerpts. He points out that the trust machine may effectively curb the attempt for cheating bank loan.http://news.8btc.com/blockchain-integration-into-supply-chain-finance-to-curb-bankloan-cheating